With the upcoming Federal election,does anyone see a GST to be introduced on Bullion products that seems to be spread across Europe and the UK
Singapore, which is striving to become the financial hub in Asia, has just dropped their GST for Precious Metals since Oct 2012. If any, I would presume that to be a prevalent trend than otherwise. Revlisify
I hope you and GP are right. It's certain there will be new taxes to cover the huge budget holes and the raft of election promises to be paid for. I would not be so certain about ruling this one out. Of course I speak from a layman's point of view and there is likely some thing you guy's know that I don't. At least, I hope there is, you seem very certain.
I can see the filthy maggots taxing silver. Not gold tho as it would be taxing the elite. Basically as the fiscal black hole continues to deepen, I would not rule it out, they will try and tax anything that does not have tax and increase tax on items already attracting it. I do hope we never see it, but lowlife scum in desperate times will take desperate measures. I have more faith in the fleas on my dog than either side of government. We would simply drop silver and sell gold only, deny them the collection of tax.
+1 Ah, true. I wasn't thinking about the volume which would be miniscule in the grand scheme of things. Probably cost more to implement than the revenue it produced. That makes things much clearer. Thanks for bringing that up, pretty obvious now why it would be so unlikely.
No GST ^^ 100% agree.. However, I would like to see a sovereign savings scheme set up from the gold and silver mining industries not in cash but by contributing a very small amount of actual production and for it be held in trust at the national capital with the intent of it only being used in the time of an actual terrible economic downtrurn.. It could only be spent by consent of the people by a referendum. My reason for putting this idea forward is that the Uk didn't have a sovereign wealth fund and Norway did. Now we all know that the UK didn't save for a rainy day and Norway did. Norway has benefited from this plan whilst the UK is in turmoil. Also a small % from the Mining Tax(should it still exist after the election) should be set aside to buy gold/silver from our local mines at say spot plus 5% and added to our stack in Canberra. Now fellow SS members, my argument is that if we are stackers because most of us don"t believe in fiat but we do believe that TSWHTF one day. We stack silver for a rainy day. Shouldn't we encourage the government to do the same? What do you think? I know I'm dreaming to expect MP's to do anything like this but you never know. Maybe the world's greatest treasurer is just around the corner! Regards Errol 43
Given that the industry is multi-billions - it's more a case of it destroying the industry if it were applied. The margins can't support the cash flow implications. Imagine you're a dealer with $10m in stock - you've got to come up with $1m just to finance the GST outlay before you sell anything. Now imagine you're a refinery refining $100m or $1b a year...
A lot of SMSF's are registered for GST so the net impact will be zero.Such a move may see the SMSF sector become more popular.
